Leighton Holdings subsidiary Leighton Contractors has secured a contract extension worth A$125m ($134.5m) for the provision of mining services at the Moorvale Mine in Australia’s Central Queensland’s Bowen Basin.

Peabody Energy subsidiary awarded the contract which extends the earlier deal from June 2012 to September 2013.

Under the terms of the deal, Leighton Contractors will be responsible for the management, fleet maintenance and operational services for mining at the project.

Leighton Mining general manager Greg Fokes said: "This recognises our ability to work closely alongside our clients to add value to their operations and is a reflection of the hard work, focus and commitment to team work and excellence demonstrated by both parties at Moorvale.

"It also is a positive step for us in building our relationship with Peabody Energy following its 100% acquisition of Macarthur Coal in 2011. We look forward to working with Peabody Energy to further improve productivity at Moorvale Mine."

The Moorvale open-cut mine is owned by the Coppabella and Moorvale joint venture managed by Macarthur Coal with a 73.3% stake.

The mine, located 156km southwest of Mackay near the townships of Nebo and Moranbah, and 12km from the Coppabella Mine, is operated by Australian Premium Coals.

Moorvale is an extremely narrow mine and has deeply dipping coal seams with a number of fault lines which required expertise in both the planning and working of the pit.

The Moorvale mine produces around 3.5 million tonnes of coal a year and low volatile PCI thermal and soft coking coal is exported to Asia, Europe and South America.

Leighton Contractors has found the average seam thickness of the resource at 9m while the site is estimated to have 39 million tonnes of recoverable coal.